Starlink deal: All You Need to Know

Bharti Airtel and Reliance Jio are set to bring Elon Musk-led SpaceX’s Starlink satellite services to India. The move is set to give thrust to India’s telephone density, especially in rural areas.

In the near-term, though, ambiguity over regulatory clarity may keep upside in the stocks restricted, they cautioned.

Siddhesh Mehta, research analyst at SAMCO Securities said, “Long-term investors may find attractive entry points in these stocks amid market corrections. Gradually adding these stocks during dips can enhance portfolio value, especially as telecom expansion, 5G adoption, and digital initiatives drive sustained growth prospects for Bharti Airtel and Reliance Jio.”

Previously, Bharti Airtel announced a deal with SpaceX to bring Starlink’s high-speed internet services to its customers in India.

Mukesh Ambani-led Jio Platforms, also announced a similar agreement with SpaceX.

As per the analysts at Citi Research, the deals would be suitable for servicing remote rural areas where there are coverage gaps rather than high-density urban areas where satellites may not be able to match terrestrial networks in terms of capacity and coverage.

Both the telecom giants can use this partnership to expand their business-to-business (B2B) connections and related offerings to enterprises and businesses in areas that otherwise lack fibre/fixed wireless access (FWA).